Student Loan Update: NELFUND Denies Repayment Claims, Reassures Students
The Nigerian Education Loan Fund (NELFUND) has moved swiftly to quell growing anxiety among the academic community by debunking widespread claims that beneficiaries are required to begin immediate reimbursement. The NELFUND student loan repayment rules, as established under the Students Loans (Access to Higher Education) Act 2024, explicitly protect students from any financial obligation until long after their academic journey is complete.
On Sunday, January 25, 2026, NELFUND’s Director of Strategic Communications, Mrs. Oseyemi Oluwatuyi, issued a definitive statement labeling recent media reports of a repayment directive as “false, misleading, and unfounded.”
The controversy was ignited by a fraudulent circular, purportedly from the University of Benin (UNIBEN), which detailed a fabricated repayment schedule for the 2025/2026 session. Professor Edoba Bright Omoregie (SAN), Vice Chancellor of UNIBEN, has since disowned the document, confirming that no such guidelines originated from the institution or the Federal Government. NELFUND has emphasized that its primary focus remains on expanding access to tertiary education through transparent and student friendly financing, rather than premature debt collection.
To reassure the over 1.3 million applicants currently in the system, NELFUND highlighted the specific legal shields provided to every beneficiary. In School Grace Period means no student is required to pay a single kobo while they are still enrolled in their respective institutions. Unemployment Protection ensures that repayment obligations do not kick in if a graduate remains unemployed.
The law recognizes the economic realities of the job market and ensures that the loan does not become a burden during a job search. Post NYSC Timeline states that according to the Fund’s terms and conditions, if a graduate participates in the National Youth Service Corps (NYSC), they are granted an additional two year grace period after completing their service before repayment is even considered.
Income Based Deduction ensures that once gainfully employed, the repayment is structured as a direct deduction not exceeding 10% of the beneficiary’s monthly salary at the source.
While dismissing the rumors, NELFUND also provided updates on its massive 2026 operational rollout. On January 19, 2026, the Fund successfully disbursed ₦1.33 billion to the University of Lagos (UNILAG) to cover the institutional fees of 6,308 students for the new academic session.
Managing Director Akintunde Sawyerr has reiterated a “zero tolerance” policy for institutions that attempt to sabotage the scheme. NELFUND has warned that any school demanding payment from students after receiving funds from the government is committing a criminal offense.
The Fund has also streamlined its upkeep allowance system, which provides ₦20,000 monthly to students who opt for it. To prevent delays, beneficiaries are now required to link their applications to commercial bank accounts rather than digital wallets.
READ ALSO: Over 11,600 Students Set to Receive Unpaid NELFUND Upkeep Allowance
As NELFUND expands its sensitization efforts to parents and guardians nationwide, the message remains clear: the student loan is a lifeline, not a trap. Beneficiaries are encouraged to verify all information through the official portal and disregard unverified social media “circulars” designed to cause distress.